Assignment Paper Explaining a Supply Chain Functions (Essay Sample)

Running Head: Supply Chain Management
Supply Chain Management
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Customer's Course
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October 28th, 2013.
Supply chain administration is the flow of commodities from source to destination. The purpose of managing supply chain is to avoid inconveniency to clients and enhance profit to the respective shareholders. The goods to transport may be in form of unrefined materials, work in progress or completed goods. For effective flow of product or services, an efficient and reliable form of communication is vital in order to undertake the business smoothly. A good supply chain must also incorporate into its systems operations management, logistics, and procurement and information technology. Logistics involves handling how various requested orders are processsed, stock management. Logistics is also involved with transport and storage of products or services (Blanchard 2010).
It must also ensure good liaison between the suppliers, the mediators, distant parties, and other people who directly or indirectly provide raw materials, services, or products to any given company. There are various stages in supply chain. A supply chain first stage may begin from manufacturers or raw materials producers to the wholesalers, or distributors who get the commodity from manufactures and distribute or supply to retailers. The main aim of a supply chain management should be obtaining quality products in the e actual quantities (Chopra, &Meindl. 2004).
These paper highlights about Dell supply chain management. Dell is a firm found in United States. The Company initially was a computer manufacturing company founded in the year 1984 by Michael dell (Dell & Fredman 2006). Initially computers made only when a customer requested and make depended on the customer stipulations. Therefore, the direct sales supply chain was in effect as that time. In about the year 2000 Dell was in equal competition with the then giant's companies like HP and IBM and Compaq. Dell has diversified it market by reviewing products to sell. In this regard, dell provides some products and services like online servers, workstations, printing machines, and PDAS, flat screens televisions and various types of cameras (Dell & Fredman 2006). This was a confident transition from providing only one product to providing various technological devices. Up to date Dell remains a good example to among various companies that have the aim of succeeding in business. The reason behind Dell success is an effective and efficient supply chain management. The supply chain used by Dell is selling products direct to clients without intermediaries. This is in most cases done through Dell website. The website is available any time and customers are a able to view and select various products and make instant purchases hence saving both time that would have been used to go to a distributor or a retailer (Dell & Fredman 2006). The cost is saved that would have been incurred in travelling to view the product.
Another upper hand derived from website and internet marketing is that a website is impartial on whom to sell the products. A customer can ask any question and receive an instant answer hence the Dell company is well connected to the clients and can act immediately on the specifications and recommendations made by clients. Anyone either individual or a large organization can buy the product directly. The good relation with final consumers gives Dell a competitive edge over other competitors (Dell & Fredman 2006). From the fact that Dell deals directly with all clients, it is easy to focus and identify large organizations and if the large organizations demand and preference satiated, can act as a great and reliable customer. In this case, it is possible to anticipate the demand of any product at any given time. Another factor that has boosted Dell is advancement in information technology, which has out maneuvered the previous eye-to-eye contact practiced by Dell initially (Dell & Fredman 2006).
In addition, Dell uses premier pages and platinum councils as their merchandising tool to customers. Premier pages are information technology procurement and support sites for major clients that allow them to undertake decisive purchases. Due to the benefits derived from these facility dell has tremendously increased the number of premier pages to thousands. Platinum councils are meeting junctions for important and major customers where exchange of views and ideas on how one benefits and feels about dell products take place (Dell & Fredman 2006).
Dong, Carter &Dresner 2001 argues that, another strategy used by dell is making to order, which involves making products according to customer's preferences. The products made sold at reduced prices and within a very short duration of time. The direct customer's link also acts as a vital source of information to the manufacturers and therefore improvement on products to suit customer demand. This gives it the advantage of just in time stock. Dell products remain in stock for a very short time hence saving space and cost. Dell has made very efficient shipping arrangements to reach the clients within the very shortest time possible. When Dell ships products to customers time saved and customers get the commodity within a considerable time. There is also the advantage of low cost of stock storage and instant response to demand. Dell mostly has little stock and can therefore order from suppliers' regularly. Customers who request and specify for various components incorporated in their devices pay a certain amount to Dell. Dell will therefore not encounter financial difficulties in making new orders. Another important aspect is that dell deals in experienced suppliers and before entering into contacts with them the various supplies have to meet certain thresholds. Dell meets with various supplies to get eye-to-eye feedback and Dell rewards suppliers who perform well. This motivates these companies to perform more efficiently. Dell also aim to reduce stock held and mostly request suppliers to provide stock very fast on a daily basis rather than on weekly basis as done by most companies. This remains a challenge for many businesses because it is always hard to balance and satisfy various clients' demands simultaneously. As a result clients develop confidence on Dell delivery services since its is reliable (Dong,Carter &Dresner2001).
However, to satisfy demands would not be easier without an efficient flow of information, which in this case done through internet. Suppliers are informed about the required stock in the supply mechanism, information about demand and able to get anticipation reports about productions and make instant and immediate responses. This avoids delay and inconveniency (Nagurney, 2006).
An effective supply system would not be effective with the use of technology alone. The human factor in this case is a requirement. To achieve and meet these demand and supply targets people are required to perform these tasks and use these technologies effectively. Managers are required to attend anomalies and unexpected circumstances that may happen at one point in time.
Dell does not have an effective decomposable system and therefore a question arises on the preparedness of disposing this product Dell manufactures. Dell should come up with strategies and environmental conducive way of recycling the obsolete products or a good and safe disposal method (Dell & Fredman 2006).
Dell buys stock to order and not necessarily to stock and therefore incase of unexpected shift in demand may not have enough stock. Having space to store may not be such expensive for dell compared to the loss inculcated of sales that can be forgone (Chopra &Van Mieghem 2000).
Dell performance and operation seems not to give room for mistakes, which in most cases may be unavoidable. Some decisions made instantly may also have negative effects on Dell because not all specifications made by a client will cost the same and some may lead to a loss or little profit to Dell (Nagurney, 2006).
It is the dream and goal of any given companies to become a national companies and Dell is not an exception. Dell plans to further diversify the market and dominate the international market. Selling direct to customers may not prove efficient at such times. Dell is required to acquire the existing companies in any new market as a good mode of entry too any given market. After acquisition, Dell will be the major shareholder and therefore the profit realized can be massive. To become multinational company a special human resource concerned has to widen its market and branches to various distinguished countries. Therefore, Dell is required to employ various stages of supply chain like wholesalers and retailers who can act as a good tool to market Dell in these countries. This is possible through undertaking face-to-face marketing strategy (Dell & Fredman 2006).
However, at some instances intermediaries may prove expensive in both time and cost. Despite the cost factor these intermediaries would, thouruoghly cover a large area compared to direct sale method. Direct method addresses the specific customer at that time, who at may not be the potential customer (Chopra &Van Mieghem 2000).
Dell also uses internet and website in marketing but this may not prove efficient in areas where internet connectivity is poor. These areas might provide many potential clients. There are also other areas where internet and websites is not a prerequisite to do business. Some people prefer having product closer to view and see the features directly rather than seeing in websites. The customers who might be an important tool for Dell ignored eventually. Dell should therefore come up with strategies to satiate this customer's demand (Dell & Fredman 2006).
Dell manufactures products according to c...